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- Newsgroups: misc.entrepreneurs
- Path: sparky!uunet!panther!mothost!lmpsbbs!news
- From: ogden_jon@macmail1.rtsg.mot.com
- Subject: Re: CD Mail Order
- Organization: Motorola LPA Development
- Date: Wed, 30 Dec 1992 09:12:40 GMT
- Message-ID: <1992Dec30.091240.20398@lmpsbbs.comm.mot.com>
- References: <BzoIE1.Lt@undergrad.math.waterloo.edu>
- Sender: news@lmpsbbs.comm.mot.com (Net News)
- Nntp-Posting-Host: 136.182.202.173
- Lines: 30
-
- In article <BzoIE1.Lt@undergrad.math.waterloo.edu>
- nkkwan@undergrad.math.waterloo.edu (Thomas Kwan Nang Kon) writes:
- >Recently, I checked up a stereo magazine, and notified there is
- >an advertisment from a CD Club. They claimed that you can get
- >4 CDs just for 1 cent, and the obligation is that you have to
- >order 4 more at regular price around $14.0-17.0. My question is
- >how they get such good prices? I am thinking to set up mail order for
- >japanese CDs.
- >
- >ThOmAs KwAn
- >nkkwan@descartes.uwaterloo.ca
- >
- CD's only cost a couple of dollars at most to make. All the rest of the price
- is just profits that occur from markups along the retail chain. The record
- companies who make the CDs and have the clubs then make a killing on CDs
- because there is no middle man and they sell to the consumer at full price.
- Hence they can give discounts and still make lots of money. In addition they
- charge you shipping and handling charges. These usually amount to 3 or 4
- dollars. Now shipping does not cost that much so I guess the rest is
- "handling." What does "handling" mean? It is just an obscure way of hiding a
- price markup in a technical term.
-
- Still though, the CD clubs are a decent deal and one cannot beat the
- convenience.
-
- later,
-
- Jon
-
-
-